Silver price is wavering around $26 amid a weakening US dollar and lower US bond yields. The dollar index, which tracks the value of the greenback against that of several other currencies, was down by 0.53% at 91.13. That is its lowest level since early March.
The greenback, which is considered a safe haven, has been impacted by the risk-on sentiment. At the same time, the 10-year treasury yields are close to the one-month low of 1.53 at the current 1.55.
This comes at a time when JPMorgan, Goldman Sachs, and other major companies have recorded better-than-expected earnings. Besides, the Federal Reserve has maintained its position that a rise in inflation will be temporary. The situation has been positive for silver price as it tends to have an inverse correlation with the value of the US dollar.
Silver Price Technical Outlook
Silver price is still flirting with $26 after being on an uptrend in the previous week. The precious metal surged from the week’s low of 24.66 to get past $26 for the first time in a month. $26 is currently its support-turn-resistance level. On Monday, it was up by 0.55% at $26.09.
On a 3-hour chart, silver price is trading above the 25 and 50-day exponential moving averages. Besides, it has remained above the ascending trending line. The bullish outlook will continue as long as the price remains above the trend line.
However, it is likely to trade sideways in the near term as the bulls gather enough momentum to push it past $26.50. On the flip side, a move below the trend line will place the next targets at $25.50 and the psychological $25.
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